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Debt | 12 Months Ended
--- | ---
Dec. 31, 2024
Debt |
Debt | 13. Debt Short-Term Debt The components of short-term debt were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | December 31, 2024
​ | ​ | Financing | ​ | ​ | ​ | ​ | ​ | ​ | Short-term debt
Obligor/Applicant |  | structure |  | Maturity |  | Capacity |  | outstanding
​ | ​ | ​ | ​ | ​ | ​ | (in millions)
Principal Life |  | Credit facility |  | October 2027 | ​ | $ | 800.0 | ​ | $ | —
Principal Compañía de Seguros de Vida |  |  |  |  | ​ |  | ​ | ​ |  | ​
Chile S.A. | ​ | Unsecured lines of credit | ​ | ​ | ​ | ​ | 77.0 | ​ | ​ | 31.1
Principal International de Chile S.A. |  | Unsecured lines of credit |  |  | ​ |  | 21.8 | ​ |  | 2.6
​ | ​ | Secured subscription | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Principal Credit Real Estate Income Trust | ​ | facility | ​ | ​ | ​ | ​ | 126.0 | ​ | ​ | 119.0
Total |  |  |  |  | ​ | $ | 1,024.8 | ​ | $ | 152.7
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | December 31, 2023
​ | ​ | Financing | ​ | ​ | ​ | ​ | ​ | ​ | Short-term debt
Obligor/Applicant |  | structure |  | Maturity |  | Capacity |  | outstanding
​ | ​ | ​ | ​ | ​ | ​ | (in millions)
Principal Life |  | Credit facility |  | October 2027 | ​ | $ | 800.0 | ​ | $ | —
Principal Compañía de Seguros de Vida | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Chile S.A. | ​ | Unsecured lines of credit | ​ | ​ | ​ | ​ | 97.3 | ​ | ​ | 58.4
Principal International de Chile S.A. |  | Unsecured lines of credit |  |  | ​ |  | 33.6 | ​ |  | 0.2
Other short-term borrowings | ​ | Uncollateralized debt | ​ | ​ | ​ | ​ | 2.5 | ​ | ​ | 2.5
Total | ​ | ​ | ​ | ​ | ​ | $ | 933.4 | ​ | $ | 61.1
​ Our revolving credit facility is committed and available for general corporate purposes. This credit facility also provides 100% back-stop support for our commercial paper program, of which we had no outstanding balances as of December 31, 2024 and 2023. The weighted-average interest rate on short-term borrowings as of December 31, 2024 and 2023, was 7.6% and 15.6%, respectively. The unsecured lines of credit can be used for repurchase agreements or other borrowings. Each line has a maturity of less than one year. The secured subscription facility provides for revolving loans, up to a maximum aggregate availability of $150.0 million, which are secured by outstanding capital commitments of Principal Life and an unaffiliated insurance company. Borrowings are permitted for any purpose under the borrowers’ constituent documents and are required to be repaid within twelve months of issuance. The weighted-average interest rate on short-term borrowings as of December 31, 2024, was 6.84%. Long-Term Debt The components of long-term debt were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2024 |
​ |  | Principal |  | Net unamortized discount, premium and debt issuance costs |  | Carrying amount |
​ | ​ | (in millions) |
3.4% notes payable, due 2025 | ​ | $ | 400.0 | ​ | $ | (0.2) | ​ | $ | 399.8 | ​
3.1% notes payable, due 2026 | ​ | ​ | 350.0 | ​ | ​ | (0.7) | ​ |  | 349.3 | ​
3.7% notes payable, due 2029 | ​ | ​ | 500.0 | ​ | ​ | (3.1) | ​ | ​ | 496.9 | ​
2.125% notes payable, due 2030 | ​ | ​ | 600.0 | ​ | ​ | (2.8) | ​ | ​ | 597.2 | ​
5.375% notes payable, due 2033 | ​ | ​ | 400.0 | ​ | ​ | (3.5) | ​ | ​ | 396.5 | ​
6.05% notes payable, due 2036 | ​ | ​ | 505.6 | ​ | ​ | (2.0) | ​ |  | 503.6 | ​
4.625% notes payable, due 2042 | ​ | ​ | 300.0 | ​ | ​ | (2.7) | ​ |  | 297.3 | ​
4.35% notes payable, due 2043 | ​ | ​ | 300.0 | ​ | ​ | (2.8) | ​ |  | 297.2 | ​
4.3% notes payable, due 2046 | ​ | ​ | 300.0 | ​ | ​ | (2.9) | ​ | ​ | 297.1 | ​
5.5% notes payable, due 2053 | ​ | ​ | 300.0 | ​ | ​ | (4.3) | ​ | ​ | 295.7 | ​
Secured credit facilities | ​ | ​ | 21.8 | ​ | ​ | — | ​ | ​ | 21.8 | ​
Non-recourse mortgages and notes payable | ​ | ​ | 3.0 | ​ |  | (0.1) | ​ |  | 2.9 | ​
Total long-term debt | ​ | $ | 3,980.4 | ​ | $ | (25.1) | ​ | $ | 3,955.3 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2023 | ​
​ |  | Principal |  | Net unamortized discount, premium and debt issuance costs |  | Carrying amount |
​ | ​ | (in millions) | ​
3.4% notes payable, due 2025 | ​ | $ | 400.0 | ​ | $ | (0.7) | ​ | $ | 399.3 | ​
3.1% notes payable, due 2026 | ​ | ​ | 350.0 | ​ | ​ | (1.1) | ​ |  | 348.9 | ​
3.7% notes payable, due 2029 | ​ | ​ | 500.0 | ​ | ​ | (3.8) | ​ | ​ | 496.2 | ​
2.125% notes payable, due 2030 | ​ | ​ | 600.0 | ​ | ​ | (3.2) | ​ | ​ | 596.8 | ​
5.375% notes payable, due 2033 | ​ | ​ | 400.0 | ​ | ​ | (3.8) | ​ | ​ | 396.2 | ​
6.05% notes payable, due 2036 | ​ | ​ | 505.6 | ​ | ​ | (2.1) | ​ |  | 503.5 | ​
4.625% notes payable, due 2042 | ​ | ​ | 300.0 | ​ | ​ | (2.8) | ​ |  | 297.2 | ​
4.35% notes payable, due 2043 | ​ | ​ | 300.0 | ​ | ​ | (2.9) | ​ |  | 297.1 | ​
4.3% notes payable, due 2046 | ​ | ​ | 300.0 | ​ | ​ | (3.0) | ​ | ​ | 297.0 | ​
5.5% notes payable, due 2053 | ​ | ​ | 300.0 | ​ | ​ | (4.3) | ​ |  | 295.7 | ​
Non-recourse mortgages and notes payable | ​ |  | 3.1 | ​ |  | (0.1) | ​ |  | 3.0 | ​
Total long-term debt | ​ | $ | 3,958.7 | ​ | $ | (27.8) | ​ | $ | 3,930.9 | ​
​ Net discount, premium and issuance costs associated with issuing these notes are amortized to expense over the respective terms using the interest method. On March 8, 2023, we issued $700.0 million of senior notes. We issued a $400.0 million series of notes that bear interest at 5.375% and will mature in 2033 and a $300.0 million series of notes that bear interest at 5.5% and will mature in 2053. Interest on the notes is payable semi-annually on March 15 and September 15 each year, beginning on September 15, 2023. The proceeds from these notes were used to redeem our floating rate notes payable due in 2055 and to repay at maturity our 3.125% notes payable due in 2023. We incurred a one-time cost to extinguish this debt before the scheduled maturity date, which was recorded in operating expenses on the consolidated statements of operations. On June 12, 2020, we issued $500.0 million of senior notes at a discount. On August 3, 2020, we issued an additional $100.0 million of senior notes at a premium. These notes bear interest at 2.125% and will mature in 2030. Interest on the notes is payable semi-annually on June 15 and December 15 each year, beginning on December 15, 2020. The proceeds from these notes were used for general corporate purposes. On May 7, 2019, we issued $500.0 million of senior notes. The notes bear interest at 3.7% and will mature in 2029. Interest on the notes is payable semi-annually on May 15 and November 15 each year, beginning on November 15, 2019. The proceeds from these notes, along with available cash, were used to fund the acquisition of an institutional retirement and trust business. On November 10, 2016, we issued $650.0 million of senior notes. We issued a $350.0 million series of notes that bear interest at 3.1% and will mature in 2026 and a $300.0 million series of notes that bear interest at 4.3% and will mature in 2046. Interest on the notes is payable semi-annually on May 15 and November 15 each year, beginning on May 15, 2017. The proceeds from these notes were used to redeem our notes payable due in 2017 and 2019. We incurred a one-time cost to extinguish this debt before the scheduled maturity date. On May 7, 2015, we issued $400.0 million of junior subordinated notes, which were subordinated to all our senior debt. The notes became callable in 2020 and had a maturity date in 2055. The notes initially bore a fixed rate of interest at 4.7% and converted to a floating rate at the date the notes became callable. Interest on the notes was payable semi-annually on May 15 and November 15 each year. After the call date the notes bore interest at 3-month LIBOR plus 3.044%, reset quarterly and payable in arrears in February, May, August and November each year. We had the right to defer interest payments on the junior subordinated notes for up to 5 years without resulting in a default, during which time interest will be compounded. The junior subordinated notes were repaid following our March 2023 debt issuance. In addition, on May 7, 2015, we issued $400.0 million of senior notes. The notes bear interest at 3.4% and will mature in 2025. Interest on the notes is payable semi-annually on May 15 and November 15 each year, beginning on November 15, 2015. The proceeds from both the junior subordinated notes and the senior notes were used to redeem preferred stock, with the remainder available for general corporate purposes. On November 16, 2012, we issued $900.0 million of senior notes. We issued a $300.0 million series of notes that bore interest at 1.85% and were to mature in 2017. These notes were repaid following our November 2016 debt issuance. We issued a $300.0 million series of notes that bore interest at 3.125% and matured in 2023 and a $300.0 million series of notes that bear interest at 4.35% and will mature in 2043. Interest on the notes is payable semi-annually on May 15 and November 15 each year, beginning on May 15, 2013. The proceeds were used to fund our acquisition of Cuprum. On September 5, 2012, we issued a $300.0 million series of senior notes that bear interest at 4.625% and will mature in 2042. Interest on the notes is payable semi-annually on March 15 and September 15 each year, beginning on March 15, 2013. The proceeds were used for the repayment of the $400.0 million aggregate principal amount of notes due in 2014 and to partially fund our acquisition of Cuprum. On October 16 and December 5, 2006, we issued $500.0 million and $100.0 million, respectively, of senior notes. The notes bear interest at a rate of 6.05% per year. Interest on the notes is payable semi-annually on April 15 and October 15 each year and began on April 15, 2007. The notes will mature on October 15, 2036. A portion of the proceeds were used to fund the 2006 acquisition of WM Advisors, Inc., with the remaining proceeds being used for general corporate purposes. A tender offer in the fourth quarter of 2016 resulted in redemption of $94.4 million of the senior notes. We incurred a one-time cost to extinguish this debt before the scheduled maturity date. Our secured credit facilities are primarily financings for real estate loans. As of December 31, 2024, the outstanding principal balance was $21.8 million for one loan with an interest rate of 6.47%. Outstanding debt is secured by the underlying real estate loans, which were reported as mortgage loans on our consolidated statements of financial position with a carrying value of $29.0 million as of December 31, 2024. The non-recourse mortgages and notes payable are primarily financings for a real estate development. As of December 31, 2024 and 2023, the notes had outstanding principal balances of $2.9 million and $3.0 million, respectively, with an interest rate of 4.0%. Outstanding debt is secured by the underlying real estate properties, which were reported as real estate on our consolidated statements of financial position with a carrying value of $14.3 million and $321.7 million as of December 31, 2024 and 2023, respectively. As of December 31, 2024, future annual maturities of long-term debt were as follows (in millions): ​
​ | ​ | ​ | ​ | ​
Year ending December 31: |  | ​ |  |
2025 | ​ | $ | 421.6 | ​
2026 | ​ | ​ | 349.3 | ​
2027 | ​ | ​ | 0.1 | ​
2028 | ​ | ​ | 2.8 | ​
2029 | ​ | ​ | 496.9 | ​
Thereafter | ​ | ​ | 2,684.6 | ​
Total future maturities of long-term debt | ​ | $ | 3,955.3 | ​
​ Contingent Funding Agreements for Senior Debt Issuance On March 8, 2018, we entered into two contingent funding agreements: (1) a 10-year contingent funding agreement with a Delaware trust (“2028 Trust”) formed by us in connection with the sale by the trust of $400.0 million pre-capitalized trust securities redeemable February 15, 2028 (“2028 P-Caps”) in a Rule 144A private placement and (2) a 30-year contingent funding agreement with a Delaware trust (“2048 Trust”) formed by us in connection with the sale by the trust of $350.0 million pre-capitalized trust securities redeemable February 15, 2048 (“2048 P-Caps”) in a Rule 144A private placement. The trusts invested the proceeds from the sale of the 2028 P-Caps and 2048 P-Caps in a portfolio of principal and interest strips of U.S. Treasury securities. The contingent funding agreements provide us a put option that gives us the right to sell at any time: (1) to the 2028 Trust up to $400.0 million of its 4.111% Senior Notes due 2028 (“4.111% Senior Notes”) and (2) to the 2048 Trust up to $350.0 million of its 4.682% Senior Notes due 2048 (“4.682% Senior Notes”) and receive in exchange a corresponding amount of the principal and interest strips of U.S. Treasury securities held by the trusts. The 4.111% Senior Notes and 4.682% Senior Notes will not be issued unless and until a put option is exercised. We agreed to pay a semi-annual put premium of 1.275% and 1.580% per annum on the unexercised portion of the put option to the 2028 Trust and 2048 Trust, respectively, and to reimburse the trusts for expenses. The put option premiums are recorded in operating expenses in the consolidated statements of operations. The 4.111% Senior Notes and 4.682% Senior Notes will be fully, irrevocably and unconditionally guaranteed by Principal Financial Services, Inc. (“PFS”). In addition, our obligations under the put option agreement and the expense reimbursement agreement with the trusts are also guaranteed by PFS. The contingent funding agreements with the trusts provide us with a source of liquid assets, which could be used to meet future financial obligations or to provide additional capital. The put options described above will be exercised automatically in full if we fail to make certain payments to the trusts, including any failure to pay the put option premium or expense reimbursements when due, if such failure is not cured within 30 days, and upon certain bankruptcy events involving us or PFS. We are also required to exercise the put option in full: (i) if we reasonably believe that our consolidated shareholders’ equity, calculated in accordance with U.S. GAAP but excluding AOCI and noncontrolling interest, has fallen below $4.0 billion, subject to adjustment in certain cases; (ii) upon the occurrence of an event of default under the 4.111% Senior Notes and 4.682% Senior Notes; and (iii) if certain events occur relating to each trust’s status as an “investment company” under the Investment Company Act of 1940. In addition, we are required to purchase from the trusts any principal and interest strips of U.S. Treasury securities that are due and not paid. We have an unlimited right to unwind a prior voluntary exercise of the put options by repurchasing all of the 4.111% Senior Notes and 4.682% Senior Notes held by the trusts in exchange for a corresponding amount of principal and interest strips of U.S. Treasury securities. If the put options have been fully exercised, the 4.111% Senior Notes and 4.682% Senior Notes issued may be redeemed by us prior to their maturity at par or, if greater, at a make-whole redemption price, in each case plus accrued and unpaid interest to the date of redemption. The 2028 P-Caps are to be redeemed by the 2028 Trust on February 15, 2028, or upon any early redemption of the 4.111% Senior Notes. The 2048 P-Caps are to be redeemed by the 2048 Trust on February 15, 2048, or upon any early redemption of the 4.682% Senior Notes.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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